Katieandmarcusm
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- Feb 11, 2015
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Great site and appreciate all the wonderful knowledge on the site. Look forward to any information you can give!
We are just in the business planning stage, but want to be very thorough in my personal plan. My apologies if these questions were answered in another forum I have not come across, I continue to read through as many posts as I can.
My wife and I are putting together a 2 year plan to open an Inn about an hour or so away outside of our city. We are looking for an small tavern with a small kitchen to turn into an inn. We have actually come across quite a few real estate properties where this makes sense. We do not have the capital to purchase a fully functioning inn, so we need to build from the property up with no books. We have about $50k plus a nice 25% down payment on a $300k-$400k property (yes we are finding properties in that range). We plan to continue to work through most of the renovations and budget about a year of mortgage payments after renovations are done and we are building the business. She will continue to work. Our plan would be to get the inn up and running first using the tavern as B&B; move to dinners, then ultimately open as a full tavern.
My questions for you on how you would approach this transition:
We currently do well in showing our income (Over $200k/year). Would our best bet be to purchase as an investment residential property while we have the dual income rather than try for a business loan? I understand how hard small business loans are to get, and I am seeing on here it isn't any easier for a B&B.
I have concerns $50k just not enough? Keep in mind we will still have an income, so that $50k would be for renovations and upstart, not living. Also keep in mind this would be a smaller inn.
I have a basic understanding of the zoning, coding, and licensing overall, but what is the coding like for B&B kitchens? Where is the cutoff between cooking for guests (breakfast and dinner) and outside guests? Has anyone started with breakfast and gradually moved to open up the restaurant?
Would you prioritize inn, then worry about restaurant? Is there a target income you should look at for inn to restaurant income?
Also, the real estate teams that focus on B&B's. I see these are "listing" agents, but don't see any buying agents. Do they change anything additional over their 3% commission to help in the process? Are there B&B brokers that will help in a residential situation.
Many thanks all responses appreciated!
We are just in the business planning stage, but want to be very thorough in my personal plan. My apologies if these questions were answered in another forum I have not come across, I continue to read through as many posts as I can.
My wife and I are putting together a 2 year plan to open an Inn about an hour or so away outside of our city. We are looking for an small tavern with a small kitchen to turn into an inn. We have actually come across quite a few real estate properties where this makes sense. We do not have the capital to purchase a fully functioning inn, so we need to build from the property up with no books. We have about $50k plus a nice 25% down payment on a $300k-$400k property (yes we are finding properties in that range). We plan to continue to work through most of the renovations and budget about a year of mortgage payments after renovations are done and we are building the business. She will continue to work. Our plan would be to get the inn up and running first using the tavern as B&B; move to dinners, then ultimately open as a full tavern.
My questions for you on how you would approach this transition:
We currently do well in showing our income (Over $200k/year). Would our best bet be to purchase as an investment residential property while we have the dual income rather than try for a business loan? I understand how hard small business loans are to get, and I am seeing on here it isn't any easier for a B&B.
I have concerns $50k just not enough? Keep in mind we will still have an income, so that $50k would be for renovations and upstart, not living. Also keep in mind this would be a smaller inn.
I have a basic understanding of the zoning, coding, and licensing overall, but what is the coding like for B&B kitchens? Where is the cutoff between cooking for guests (breakfast and dinner) and outside guests? Has anyone started with breakfast and gradually moved to open up the restaurant?
Would you prioritize inn, then worry about restaurant? Is there a target income you should look at for inn to restaurant income?
Also, the real estate teams that focus on B&B's. I see these are "listing" agents, but don't see any buying agents. Do they change anything additional over their 3% commission to help in the process? Are there B&B brokers that will help in a residential situation.
Many thanks all responses appreciated!